UK Inflation Rises to 4% in January

The UK Consumer Prices Index rose to 4% in January, up from 3.7% in December, as the effects of the VAT rise were felt and price of crude oil increased., UK Office for National Statistics 2/15/2011 10:49:39 AM

The main upward pressures to inflation came from petrol and diesel, restaurant and cafes, furniture and furnishings, alcoholic beverages and the purchase of vehicles.

The main downward pressures came from recreation and culture, banking services and clothing and footwear.

Annual inflation as recorded by the retail prices index (RPI) stands at 5.1 per cent in January, up from 4.8 per cent in December.

The CPI rose by 0.1 per cent between December and January this year. This is the first time ever that prices have risen between a December and January and compares with a fall of 0.2 per cent a year ago. Between 1997 and 2009, the 1-month change between December and January has varied between falls of 0.3 per cent and 0.9 per cent.

UK Inflation Rises to 4% in January